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Ways to buy a home sooner

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Find support options that could help you buy a home to live in.

Buying a home may be closer than you think

Buying a home can feel out of reach.

You might be struggling to save a deposit, borrow enough money, or qualify for a home loan. It could be your first time buying a home. Or you may be buying a home again after a major life change like a divorce or separation.

There is no single pathway into home ownership. Government programs, family support and other options may help you overcome different challenges.

The right option depends on what's stopping you from buying a home.

If you need help with a home deposit

For many people, the deposit is the biggest barrier to buying a home.

Our guide to saving for a house deposit can help you create a plan to build your savings. But there may also be options that help you buy sooner.

Buy with a smaller deposit

Some government programs can help you buy a home with a smaller deposit.

These programs may also help you avoid paying lenders mortgage insurance (LMI), which protects the lender if a borrower can’t repay their loan.

Some states and territories also offer low-deposit loan programs:

Get help with the cost of buying a home

If you're buying or building your first home, you may be eligible for a First Home Owner Grant. Each state and territory has its own rules and grant amounts. The grant can help with the cost of buying or building your home.

Check the First Home Owner Grant website to see what's available in your state or territory.

Reduce upfront costs

When you buy a home, you may need to pay transfer duty (sometimes called stamp duty). Depending on where you live, you may be eligible for a concession or exemption. This can reduce the amount of money you need upfront when buying a home.

Check what your state or territory offers:

Get help from family

Some buyers get help from family towards a deposit. This could be a cash gift or a guarantor arrangement.

A guarantor uses part of their own property as security for your home loan. In some cases, the guarantee only covers part of the loan, such as the deposit. This can help you buy sooner with a smaller deposit.

A guarantor takes on financial risk if you cannot repay the loan. Make sure everyone understands the arrangement and gets independent legal advice before proceeding.

Before choosing this option, read our guide to going guarantor on a loan.

If you have a deposit but can't borrow enough

Saving a deposit is only one part of buying a home.

You may have money saved but still find that the amount you can borrow isn't enough to buy a suitable home.

There may be options that help reduce the amount you need to borrow or increase your buying power.

Reduce the amount you need to borrow

The Australian Government Help to Buy Scheme is a shared equity scheme for eligible home buyers and some people returning to home ownership.

To use the scheme, you'll need a minimum 2% deposit and a home loan from a participating lender. The Australian Government can contribute up to 30% of the purchase price for an existing home, or up to 40% for a new home. This reduces the size of the loan you need to take out.

In return, the government keeps a share of the property's value. Eligible first home buyers and some people returning to home ownership can use the scheme.

Minh buys a home sooner with Help to Buy

Minh is 38 and wants to buy a unit close to work.

After several years of saving, he has a deposit of $45,000 and has been approved for a home loan of $550,000.

Together, that gives him $595,000 to put towards the purchase. But the unit he wants to buy costs $845,000.

That leaves a gap of $250,000. Through the Australian Government Help to Buy Scheme, the government contributes $250,000 towards the purchase price of the unit. This reduces the amount Minh needs to borrow and helps him buy a home that would otherwise be out of reach. The smaller loan also means lower repayments.

The government contribution isn't a grant. Minh will need to repay the government's share if he sells the property or chooses to buy back the government's interest in the future. The amount he repays will depend on the value of the property at that time.

This case study is for illustrative purposes. Eligibility rules apply and individual circumstances may differ.

Look for state shared equity programs

Some state governments also offer shared equity programs.

These programs work in a similar way. Another party contributes to the purchase price of the home. This reduces the amount you need to borrow. In return, they receive a share of the property's value.

Examples of this type of support include:

Buy with someone else

Buying with a partner, family member or friend can increase your buying power by combining income and savings.

Before buying together, agree on ownership, costs and how you’ll make future decisions. A legal agreement can help everyone understand their rights and responsibilities.

Ask a family member to be your guarantor

A guarantor can sometimes help you qualify for a larger loan or improve your chances of getting approved.

However, a guarantor agrees to take on financial risk if you cannot meet your loan repayments. Before choosing this option, make sure everyone involved understands the risks. Read our guide on going guarantor on a loan.

Before you apply

Support programs can help you buy a home sooner, but they won’t be right for everyone.

Check whether you are eligible

Each program has its own eligibility rules.

These may cover your income, property value, deposit size, where you want to buy, whether you’ve owned a home before.

Before making plans around a scheme, check that you meet the eligibility criteria.

Consider the ongoing costs of home ownership

Buying a home involves more than a deposit and home loan.

You may also need to budget for:

Use our mortgage calculator to help estimate the cost of owning a home. Do a budget too, to help work out where all your money is going.

Use our mortgage calculator

Understand what you’re agreeing to

Some options involve ongoing obligations or financial risks.

For example:

Make sure you understand what you're agreeing to before you sign any contracts.

You may qualify for more than one type of support. Check all your options before deciding which path to take.